KSE-100 INDEX TAKES RESPITE OF 337 POINTS; FOREIGNERS REMAINED SELLER
SUMMARY
The market remained closed on Friday due to Eid Milad-un-Nabi holiday, as market operated for four days during the week. The last day Thursday with a rally of 337 points brought KSE-100 Index above to 39,000 points to close at 40,010.36. During the week share volume improved to 129.911 million shares and market capitalization climbed by Rs19 billion to stand at Rs8.375 trillion while the foreigners were seller by $39.46m during the week. The fundamentals during the week which build up the investment tempo for the investors and affected the market movement were: Political noise of the sit-in crack down, its settlement and the resignation of Minister; MSCI rebalancing act where Engro Corp was removed from the Emerging Market Index; successful raising bonds and Sukuk worth $2.5 billion.
The market opened negative on Monday as the weekend crack down on the protestors of three-week long sit-in had the impact on investors to offload their holdings. The market nosedived and fell below 40,000 points. The news of a settlement between the protesters and the government reached the market during the trading time improving the market to close at 40,032.17 shedding 216.24 points.
The political uncertainty continued on Tuesday and the stock market remained in red zone . Furthermore a decline in global crude oil prices dampened the oil and gas exploration companies suffering losses due to heavy selling. Engro Corp gained (+1.62%) after the news that the company signed an agreement for a $500-million LNG terminal.
Investors opted to square their positions ahead of upcoming MSCI rebalancing due at the close of trading on Nov.30.The market closed below 40,000 at 39,634.13 a loss of 398.04 points.
After four days of losing streak on Wednesday the market gained 38.76 points to close at 39,672.89. A rally was witnessed in the refinery and oil marketing company sector as news that PM had decided to rum power plants on locally produced furnace oil. Pakistan State oil, National Refinery and Shell Pakistan closed positive.
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Government foray into the International Bonds market by successfully completing the sale of $2.5 billion spark interest for investors as it is assumed that it shall have impact of improving the reserves and supporting Pak Rupee parity with Dollar. The 10-year Eurobonds of $1.5bn at 6.875% and Sukuk $1.0bn at 5.625% were issued. The KSE-100 Index climbed 337.47 points to close at 40,010.36
PARTICIPANTS/ACTIVITY
On average shares of 352 companies were traded . Of these 152 were gainers and 179 were losers and 21 remained unchanged.
Foreigners were seller of $39.46m during the week; companies were net buyer $11.93m, Banks were buyers $3.22m; Mutual fund net buyer $6.38m and individuals net buyer $8.63m.
Volume leaders during the week were: K-Electric 91m; TRG Pakistan 62m; Engro Corp 28m; Azgard Nine 25m; Southern Sui Gas XD 16m;Fauji Cement 9 m; World Telecom and Dewan Motors 7m each; Engro Fertilizer 5m and Dost Steel Mills Ltd 3m.
TRIGGERS:
- Fiscal deficit for 1QFY18 clocking in at 1.2% of GDP.
- Reserve drop by $17.5m to close at $19.7 billion on Nov.24.
- Revenue collection falls short of target by Rs10 billion.
- Government likely to review auto policy.
- PM giving Ministry a deadline for viable textile package.
CONCLUSION
Technically the resistance appeared to be at 40,126 while the support could be 39,896 and 39,374.